@GardnerFinance offers excellent Landlords insurance with multi-property discounts, legal expenses, rent guarantee & eviction of squatters
I’m looking for healthcare professionals who’d like to protect their income & receive a payout on maturity http://bit.ly/nizoF2
08/05/12 is #StrokeAwarenessDay @GardnerFinance can help many stroke sufferers obtain life cover http://bit.ly/a4FNQi
Unsecured Business Loans from £25k to £100k over 1 -3 year terms are now available @GardnerFinance http://bit.ly/a4FNQi
01/05/12 is World Asthma Day & World Asthma Week is this week: Gardner Finance can help sufferers obtain life insurance http://bit.ly/a4FNQi
Which? magazine: the policy most need but most don’t have http://ping.fm/fF8zO
Which? magazine:The one policy everyone needs but the very one most don’t have: income protection Bit.ly/LqPeMw
Potentially Cheaper Life Assurance Premiums for Company Directors http://bit.ly/vyfOnM
Two reasons why next year will see higher life & critical illness insurance premiums http://bit.ly/HU8Ghi
Whilst many people are aware that gender-neutral pricing for insurance is set to come into effect from 21 December 2012 following the European Court of Justice (ECJ) ruling last March, there is another reason why premiums for life and critical illness insurance will be more expensive in 2013.
Serving as a double blow to consumers following the gender-pricing ban, which although criticised by bodies such as the Association of British Insurers (ABI) is nonetheless going to happen, there is also a taxation change on the way for insurance companies relating to the “I-E” tax regime.
I-E refers to the basis of taxation where HM Revenue & Customs has the option to tax life assurance business on Investment Income and chargeable gains (referred to as ‘I’) less expenses (referred to as ‘E’). It allows protection providers to offset some of their tax liability on trading profits made from their protection business against their investment business.
From 1st January 2013, protection business in the UK is being removed from the I-E tax regime and this will no longer be allowed.
Income Protection is not affected by this change however experts are predicting an increase in protection premiums for the majority of new protection customers buying life cover and life cover with critical illness cover in 2013.
The Actuarial Profession stated in March 2012 that removal of life and critical illness cover from the I-E tax regime “is expected to increase the price for Term Life Insurance and Accelerated Critical Illness policies by around 10%; which may create more market distortion than the move to gender neutral pricing.”
So it really is a case – and not just a scaremongering sales tactic – that any cover needed or expected to be needed is researched and applied for as early as possible.
Of course there are a few months to go but as insurance companies may have to change their systems and have their actuarial departments re-calculating rates in sufficient time there may be a flurry of activity leading up to the deadline. This could result in slower service or life offices temporarily suspending or withdrawing products meaning those leaving it late may miss out. And of course if an application is being underwritten and still awaiting medical records, a GP report or further medical evidence it could be delayed and again miss the deadline resulting in dearer premiums.
There remains a mistrust of protection products generally especially in light of the PPI mis-selling scandal but companies do publish claims statistics annually which show the vast sums of money paid out to claimants each year.
If protecting your income, health or life is important it is worth exploring options this year ahead of definite price rises and ideally seek out independent advice ideally before October 2012.
